My first question, as I sit there on the couch in his office, is: "What about gold? Is this a classic bubble or what?"

"Look," he says, with his usual confident laugh. "You could take all the gold that's ever been mined, and it would fill a cube 67 feet in each direction. For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take?"

So what does he like?

Equities.

Here's a link to my post two weeks ago comparing investments in gold to investments in productive assets. I was doing my best to make a very similar point about gold. Of course, Buffett's way of saying things is impressively concise compared to my own.

In the late 90s, before one of the worst decade for stocks was about to occur, Buffett was warning that equities were extremely overvalued and that performance going forward would be subpar.